House Amendment 1650 PAG LIN 1 1 Amend Senate File 414, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 <Section 1. NEW SECTION. 99B.7B CARD GAME 1 6 TOURNAMENTS CONDUCTED BY QUALIFIED ORGANIZATIONS 1 7 REPRESENTING VETERANS. 1 8 1. As used in this section, unless the context 1 9 otherwise requires: 1 10 a. "Card game" means only poker, pinochle, pitch, 1 11 gin rummy, bridge, euchre, hearts, or cribbage. 1 12 b. "Qualified organization representing veterans" 1 13 means any licensed organization representing veterans, 1 14 which is a post, branch, or chapter of a national 1 15 association of veterans of the armed forces of the 1 16 United States which is a federally chartered 1 17 corporation, dedicates the net receipts of a game of 1 18 skill, game of chance, or raffle as provided in 1 19 section 99B.7, is exempt from federal income taxes 1 20 under section 501(c)(19) of the Internal Revenue Code 1 21 as defined in section 422.3, has an active membership 1 22 of not less than twelve persons, and does not have a 1 23 self=perpetuating governing body and officers. 1 24 2. Notwithstanding any provision of this chapter 1 25 to the contrary, card game tournaments lawfully may be 1 26 conducted by a qualified organization representing 1 27 veterans if all of the following are complied with: 1 28 a. The organization conducting the card game 1 29 tournament has been issued a license pursuant to 1 30 subsection 4 and prominently displays that license in 1 31 the playing area of the card game tournament. 1 32 b. The card games to be conducted during a card 1 33 game tournament, including the rules of each card game 1 34 and how winners are determined, shall be displayed 1 35 prominently in the playing area of the card game 1 36 tournament. Each card game shall be conducted in a 1 37 fair and honest manner and shall not be operated on a 1 38 build=up or pyramid basis. Every participant in a 1 39 card game tournament must be given the same chances of 1 40 winning the tournament and shall not be allowed any 1 41 second chance entries or multiple entries in the card 1 42 game tournament. 1 43 c. Participation in a card game tournament 1 44 conducted by a qualified organization representing 1 45 veterans shall only be open to members of the 1 46 qualified organization representing veterans and 1 47 guests of members of the qualified organization 1 48 participating in the tournament. The cost to 1 49 participate in a card game tournament shall be limited 1 50 to one hundred dollars and shall be the same for every 2 1 participant in the card game tournament. Participants 2 2 in a card game tournament shall be at least twenty=one 2 3 years of age. 2 4 d. Cash or merchandise prizes may be awarded 2 5 during a card game tournament and shall not exceed one 2 6 thousand dollars and no participant shall win more 2 7 than a total of five hundred dollars. A qualified 2 8 organization representing veterans shall distribute 2 9 amounts awarded as prizes on the day they are won and 2 10 merchandise prizes shall not be repurchased. An 2 11 organization conducting a card game tournament shall 2 12 only display prizes in the playing area of the card 2 13 game tournament that can be won. 2 14 e. The qualified organization representing 2 15 veterans shall conduct each card game tournament and 2 16 any card game conducted during the tournament and 2 17 shall not contract with or permit another person to 2 18 conduct the card game tournament or any card game 2 19 during the tournament. 2 20 f. No person receives or has any fixed or 2 21 contingent right to receive, directly or indirectly, 2 22 any profit, remuneration, or compensation from or 2 23 related to a game in a card game tournament, except 2 24 any amount which the person may win as a participant 2 25 on the same basis as the other participants. 2 26 g. A qualified organization representing veterans 2 27 licensed under this section shall not hold more than 2 28 one card game tournament per week. Card game 2 29 tournaments held under an annual game night license 2 30 shall not count toward the limit of one card game 2 31 tournament per week for a license holder. A qualified 2 32 organization representing veterans shall be allowed to 2 33 hold only one card game tournament during any 2 34 twenty=four=hour period. 2 35 h. At the conclusion of each card game tournament, 2 36 the person conducting the card game tournament shall 2 37 announce the gross receipts received, the total amount 2 38 of money withheld for expenses, and the amount 2 39 withheld for state taxes. 2 40 i. The person conducting the card game tournament 2 41 does none of the following: 2 42 (1) Hold, currently, another license issued under 2 43 this section. 2 44 (2) Own or control, directly or indirectly, any 2 45 class of stock of another person who has been issued a 2 46 license to conduct games under this section. 2 47 (3) Have, directly or indirectly, an interest in 2 48 the ownership or profits of another person who has 2 49 been issued a license to conduct games under this 2 50 section. 3 1 3. The qualified organization representing 3 2 veterans licensed to hold card game tournaments under 3 3 this section shall keep a journal of all dates of 3 4 events, amount of gross receipts, amount given out as 3 5 prizes, expenses, amount collected for taxes, and the 3 6 amount collected as revenue. 3 7 a. The amount collected by the qualified 3 8 organization representing veterans as revenue shall be 3 9 no less than ten percent of the gross receipts 3 10 collected from each event. 3 11 b. Each qualified organization representing 3 12 veterans shall withhold that portion of the gross 3 13 receipts subject to taxation pursuant to section 3 14 423.2, subsection 4, which shall be kept in a separate 3 15 account and sent to the state along with the 3 16 organization's quarterly report. 3 17 c. A qualified organization representing veterans 3 18 licensed to conduct card game tournaments is allowed 3 19 to withhold no more than five percent of the gross 3 20 receipts from each card game tournament for qualified 3 21 expenses. Qualified expenses include but are not 3 22 limited to the purchase of supplies and materials used 3 23 in conducting card games. Any money collected for 3 24 expenses and not used by the end of the calendar year 3 25 shall be donated for educational, civic, public, 3 26 charitable, patriotic, or religious uses as described 3 27 in section 99B.7, subsection 3, paragraph "b". The 3 28 qualified organization representing veterans shall 3 29 attach a receipt for any donation made to the fourth 3 30 quarter quarterly report required to be submitted 3 31 pursuant to section 99B.2. 3 32 d. Each qualified organization representing 3 33 veterans licensed under this section shall make 3 34 recordkeeping and all deposit receipts available as 3 35 provided in section 99B.2, subsection 2. 3 36 4. An organization wishing to conduct card game 3 37 tournaments pursuant to this section as a qualified 3 38 organization representing veterans shall submit an 3 39 application and annual license fee of one hundred 3 40 dollars to the department. 3 41 Sec. 2. Section 99B.9, subsection 1, unnumbered 3 42 paragraph 1, Code 2007, is amended to read as follows: 3 43 Except as otherwise permitted by section 99B.3, 3 44 99B.5, 99B.6, 99B.7, 99B.7B, 99B.8, 99B.11, or 3 45 99B.12A, it is unlawful to permit gambling on any 3 46 premises owned, leased, rented, or otherwise occupied 3 47 by a person other than a government, governmental 3 48 agency, or governmental subdivision, unless all of the 3 49 following are complied with: 3 50 Sec. 3. Section 99B.12, subsection 1, unnumbered 4 1 paragraph 1, Code 2007, is amended to read as follows: 4 2 Except in instances where because of the location 4 3 of the game or the circumstances of the game section 4 4 99B.3, section 99B.5, section 99B.6, section 99B.7, 4 5 section 99B.7B, section 99B.8, or section 99B.9 is 4 6 applicable, individuals may participate in gambling 4 7 specified in subsection 2, but only if all of the 4 8 following are complied with: 4 9 Sec. 4. Section 423.2, subsection 4, Code 2007, is 4 10 amended to read as follows: 4 11 4. A tax of five percent is imposed upon the sales 4 12 price derived from the operation of all forms of 4 13 amusement devices and games of skill, games of chance, 4 14 raffles, and bingo games as defined in chapter 99B, 4 15 and card game tournaments conducted under section 4 16 99B.7B, that are operated or conducted within the 4 17 state, the tax to be collected from the operator in 4 18 the same manner as for the collection of taxes upon 4 19 the sales price of tickets or admission as provided in 4 20 this section. Nothing in this subsection shall 4 21 legalize any games of skill or chance or slot=operated 4 22 devices which are now prohibited by law. 4 23 The tax imposed under this subsection covers the 4 24 total amount from the operation of games of skill, 4 25 games of chance, raffles, and bingo games as defined 4 26 in chapter 99B, card game tournaments conducted under 4 27 section 99B.7B, and musical devices, weighing 4 28 machines, shooting galleries, billiard and pool 4 29 tables, bowling alleys, pinball machines, 4 30 slot=operated devices selling merchandise not subject 4 31 to the general sales taxes and on the total amount 4 32 from devices or systems where prizes are in any manner 4 33 awarded to patrons and upon the receipts from fees 4 34 charged for participation in any game or other form of 4 35 amusement, and generally upon the sales price from any 4 36 source of amusement operated for profit, not specified 4 37 in this section, and upon the sales price from which 4 38 tax is not collected for tickets or admission, but tax 4 39 shall not be imposed upon any activity exempt from 4 40 sales tax under section 423.3, subsection 78. Every 4 41 person receiving any sales price from the sources 4 42 described in this section is subject to all provisions 4 43 of this subchapter relating to retail sales tax and 4 44 other provisions of this chapter as applicable.> 4 45 #2. Title page, by striking lines 2 through 4 and 4 46 inserting the following: <game tournaments by 4 47 organizations representing veterans.> 4 48 #3. By renumbering as necessary. 4 49 4 50 5 1 5 2 D. TAYLOR of Linn 5 3 SF 414.502 82 5 4 ec/je/8773 -1-